The managing director of a real estate company has been arrested for allegedly taking booking advances of Rs 12 crore for a mega housing project in Noida extension without having land for it.

The arrested official, Sunil Kumar Rajput, told the police he had bought land for the project from an MLA belonging to the Samajwadi Party but could not start work as he wasn't given possession of the land.

The project, New Rajneegandha Greens, was worth Rs 500 crore and the firm, Rajput Developers, had collected booking advances from around 400 investors, police said.
Rajput Developers’ MD Sunil Kumar Rajput was arrested by the crime branch after a probe that followed a complaint lodged at Sector 58 police station in March by 200 cheated investors.

They alleged that they had booked flats in the project in 2011, when it was launched, and the company had refused to return the money despite no construction having taken place three years on.

“The developer had proposed the project, New Rajneegandha Greens in Sector 1 of Noida Extension with an investment of Rs 500 crore. Around 400 people invested,” said DSP Vishwajeet Srivastav.

The arrest, Srivastav added, came after a thorough probe. Rajput was picked up from a residential complex in Crossings Republik in Ghaziabad on Saturday night. “During the investigation, we found the developer did not have any land in Noida Extension but kept raising money from the public. The project

was launched in 2011 and no construction has taken place.” The firm operated from an office under the name of Rajput Properties and Developers at C block of Sector 62 in Noida. Rajput worked as a contractor and property dealer before starting this company.

Police started a probe against Rajput after receiving a complaint on March 28 from S K Garg, who lives in Omicron II sector in Greater

Noida. With many other investors approaching police on the same issue, the complaints of 200 investors were clubbed together in one FIR.

The crime branch, sources said, raided a flat in Crossings Republik after receiving a tip-off that Rajput was present there. He was produced in court and sent to judicial custody for 14 days.

“I had booked a flat in July 2013 and had paid Rs 20 lakh by cheque in favour of the company . He gave me 12 post-dated cheques and promised
assured returns but all of them bounced. Whenever we demanded our money, he came up with the excuse that he was fighting a legal battle with other companies,” said a homebuyer, who had booked flat number 1101 in the project.

New Rajneegandha Greens was sold as a luxury living project topped up with premium facilities.

It offered semi-furnished 2 and 3 BHK apartments with window airconditioners in all rooms besides woodwork and a modular kitchen.

Rajput, police said, claimed to have bought the land from a Samajwadi Party leader and paid Rs 2.5 crore for it. “I bought it from an SP leader who is a sitting MLA in UP.

His brother is also an MLA. I paid Rs 2.5 crore. I could not make further payment and they did not give me possession so I could not take up the project,” he told the police.

Asked about the alleged involvement of the Samajwadi men, DSP Srivastav said Rajput could not produce papers to prove that he had indeed bought land.